Saw this good reminder tweet from Wicked on Twitter/X.
He suggests minimum UTXO size for single sig of 1M sats and 2M sats for multi sig.
I haven’t consolidated in awhile and have a lot of sub 1M sat utxo’s from DCAing. What are stackers best strategies. Previously I was just generating a new receiving address and sending all the sats in a given wallet to it. Anyone have a better method?
Sats for all, GR
Example using Liquid, Blockstream Jade, side swap and cash app
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I do the same, but instead of SideSwap for LN -> Liquid, I use Bitfinex, which costs zero. So the overall cost is 0.1% for the peg-out, plus one on-chain fee and one Liquid tx fee per peg-out.
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Good call
Bitfinex excludes USA
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Another good suggestion.
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How to consolidate UTXOs to open LN channels
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Yep, another good resource.
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Another good resource. Thanks
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Jameson Lopp has his Economically Unspendable Bitcoin UTXO Calculator tool which is helpful.
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1018 sats \ 2 replies \ @OT 16 Jul
I used to think this was a good idea. Now I understand that consolidating UTXO'S is terrible for privacy.
If you think fees will come back to around where they are now in the next 5-10 years then I'd just leave them. If you don't you can swap them for lightning into your larger LN channel, then loop out larger UTXO'S. You could also swap for liquid or an ecash to get those smaller UTXO'S into better places for spending.
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Yes the privacy element is definitely something to consider. Good suggestions. Thanks.
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Privacy >>> consolidation UTXO
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139 sats \ 1 reply \ @k00b 16 Jul
Stackers love UTXO prep: #610849/related
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They like it because it feels dangerous to do it and also not to do it. Living on the edge.
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1055 sats \ 4 replies \ @kepford 16 Jul
I don't have an answer other than it depends.
I don't recall where but it seems like @DarthCoin had some opinions with more rational than "Wicked" provided on Twitter. I don't like advice without explanation.
I believe Darth's advice was UTOXs of different sizes with a minimum of 100k.
Consolidating UTXOs has privacy consequences so that should always be considered. But also in high fee environments small UTXO's could be unspendable. But also a huge UTXO used to make many transactions in the future will be bright on the blockchain.
The sizes has been my question for a while. If most bitcoiners believe the purchasing of bitcoin will continue to increase over time (as it has up to this point). Then why 1 million as the minimum?
I would guess the main reason is that this is a good minimum for a lightning channel. But other than that I don't see why 100k sats isn't big enough. That said, I would think it would depend on your spending habits and privacy concerns.
When you think about high fee environment future Lightning or another L2 is gonna be where you do your spending so the 100k vs 1m sat decision may not be the most important.
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As I pointed in this guide - think lie a bank, not only consolidating by 100k/UTXO but also on different levels and with different wallets. It doesn't make sense to have all your stash in just one wallet and from there operate everywhere.
Another guide that should be taken in consideration for those that are starting now stacking is this one: https://darth-coin.github.io/beginner/getting-started-stack-sats-en.html
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2 excellent charts
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I think I'm misremembering Darth's recommendation. Don't quote me :)
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Great response. The privacy implications are something to consider as well beyond what might not be viable in a future high environment.
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Nice try, fed!
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I will mark you down as undecided.
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You’re not often open to it. I had to seize the opportunity.
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This is a good reference chart.
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Thanks, was gonna do that.
This is a good table IMO.
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Honestly, this whole low fee environment should humble all of us who never thought we would see sub 10 sat/vb times again. Pretty wild. Make hey while the fees are low I guess.
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This applies to both users of the network, and miners supporting the network! It’s very interesting to watch the fee rate ebb and flow
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Yeah, it is not a great time to be a miner right now...
Brutal.
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Here is a good list : #477157
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Thanks
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I keep mine pretty simple, no less than 3M sats, and no more than 5M sats. Maybe I'm off base here but it is working well, and from my view it will work well in a higher fee environment.
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63 sats \ 0 replies \ @bzzzt 16 Jul
robosats swap. send the on chain btc and receive sats to a lightning channel.
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His is the only thing I've gone through for UTXO Consolidation strategies. May be it helps...
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Thanks for sharing
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One or two million is a good rule of thumb
Addendum: Another strategy is to use a sidechain like Liquid. Get off the blockchain then get on it later via hardware wallet and or multi signature
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On Liquid you can also have it in a hardware wallet. At least the Blockstream Jade, not sure if other ones are supported.
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Good call
Jade is the easiest hardware wallet for Liquid. I think there is one other but I can’t remember.
Blockstream Green has liquid support as well
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Any suggestions on strategy or just keep doing what I am doing?
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Sorry, I don't.
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deleted by author
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